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Clare
Clare, Solicitor
Category: UK Tax
Satisfied Customers: 28302
Experience:  25 years exeperience as a high street solcitor
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Hi My mother (lives on her own in her own house) wants to

Resolved Question:

Hi
My mother (lives on her own in her own house) wants to give me money in her senior years as she said she doesn't want me to pay lots of inheritance tax when she dies.
I am happy to accept of course but i wondered what the tax implications would be on me if I accept large sums - would the HMRC see it as tax avoidance ? or what are the boundaries/limitations on this? I read that she could give myself and my brother up to £3000 per annum - with £6000 in the first year this happens.

She has a house - mortgaged paid to the value of £220,000
Bank Account £15,000
Investment in High Income trust fund - £25,000
Investment in Bonds - £20,000

Since she is older now, I already manage her financial affairs. My brother and I have power of attorney - but it is a minefield of Tax trying to understand what she can give and when?

I thought about transferring the Investment amounts to my brother and myself - so we hold onto it in case of nursing home. Do you know what is taxable/non-taxable with the amounts I have stated above?

thanks, dave
Submitted: 1 year ago.
Category: UK Tax
Expert:  Clare replied 1 year ago.
Hi
Thank you for your question I shall do my best to assist you,
The current Inheritance Tax nil rate band is £325,000 which means it need not be a concern for your mother at all
If she did wish to do so then you are correct - she can give away £3000 a year IN TOTAL - but not to each of you.
I hope that this is of assistance - please ask if you need further information
Claire
Customer: replied 1 year ago.

thank you.


Do you know what the implications are if she wanted to give more than £3000?


 


For example - if she transferred the investment funds into my name?


thanks

Expert:  Clare replied 1 year ago.
Hi
Since Inheritance Tax is unlikely to be an issue it will have no implications at all
Claire
Clare, Solicitor
Category: UK Tax
Satisfied Customers: 28302
Experience: 25 years exeperience as a high street solcitor
Clare and other UK Tax Specialists are ready to help you

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